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Long-Term Debt
 3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Long-Term Debt
    Outstanding Balance           
    March 31,    December 31,    Current      
    2020    2019    Interest Rate    Maturity 
DGSE                    
Note payable, related party (1)  $2,928,210   $2,949,545    6.00%    May 16, 2024 
                     
ECHG                    
Note payable, related party (1)   6,641,438    6,689,507    6.00%    May 16, 2024 
                     
Sub-Total   9,569,648    9,639,052           
                     
Current portion   293,779    1,084,072           
                     
   $9,275,869   $8,554,980           

 

(1) On May 20, 2019, the Company entered into two loan agreements with John R. Loftus, the Company’s CEO, President and Chairman of the Board. ECHG, LLC (f.k.a. Corrent Resources, LLC) executed a 5-year, $6,925,979 note for the Echo Transaction, amortized over 20 years at a 6% annual interest rate. DGSE, LLC (f.k.a. DGSE Companies, LLC) executed a 5-year, $3,074,021 note to pay off the accounts payable – related party balance to Elemetal, LLC as of May 20, 2019. That promissory note is also amortized over 20 years at a 6% annual interest rate. An error was made on the original promissory loan documents for both DGSE and ECHG notes. Originally, the DGSE note stated the total monthly interest and principal payment due was $41,866 and the monthly ECHG interest and principal payment due was $94,327. The correct total of interest and principal payments due monthly on the revised note for DGSE is $22,203. The correct total of interest and principal payments due monthly on the revised note for ECHG is $49,646. The allocation between short-term and long-term Notes payable, related party was adjusted accordingly starting with the three months ending March 31, 2020.

 

Future scheduled principal payments of our note payables, related party, as of March 31, 2020 are as follows:

 

Note payable, related party - DGSE   
    
Year Ending December 31,  Amount
    
 2020 (excluding the three months ended March 31, 2020)    67,184 
 2021    95,243 
 2022    101,117 
 2023    107,354 
 2024    2,557,312 
        
    Subtotal    2,928,210 

 

Note payable, related party - ECHG   
    
Year Ending December 31,  Amount
    
 2020 (excluding the three months ended March 31, 2020)    149,580 
 2021    212,086 
 2022    225,167 
 2023    239,055 
 2024    5,815,550 
        
    Subtotal    6,641,438 
        
      9,569,648